The Settlement Agreement
On October 26, 1991, Andrew Lee signed a settlement agreement with the Church of Scientology of Los Angeles, Day Organization.
This agreement required Lee to release several Scientology organizations from all claims of liability and to dismiss his lawsuit (SF Superior Court 935411).
It also required him to " maintain strict confidentiality and silence with respect to his experiences with the Church of Scientology and any knowledge or information he may have concerning the Church of Scientology, L. Ron Hubbard, or any of the organizations, individuals and entities listed in Paragraph 2 above," and even to try to avoid being subpoenaed to testify about Scientology in court. It prohibits him from disclosing the contents of the settlement agreement.
In exchange for dropping his suit and agreeing to keep quiet, Scientology agreed to pay Lee $61,945.00. Based on statements in his lawsuit, this was almost certainly his own money - money on account for future services, not a refund. His suit says that he was pressured into paying Scientology $97,000.00, including $1,500.00 in credit card charges that he did not authorize.
Scientology agreed to pay Lee the $61,945.00 in monthly installments of $5,000.00.
After Lee dismissed his suit, Scientology paid him sporadically. Lee filed a second suit on April 7, 1992, alleging that Scientology had intentionally defrauded him and had no honest intention of paying him according to the agreement. The confidential settlement agreement from the first suit was filed with the court as part of the second lawsuit.
SETTLEMENT AGREEMENT AND MUTUAL RELEASE 1. This SETTLEMENT AGREEMENT AND MUTUAL RELEASE ("Agreement") is made and entered into this ____ day of October, 1991, by and between ANDREW LEE (hereinafter "LEE"), and the Church of Scientology of Los Angeles, Day Organization. 2. This is a release of the church of Scientology Los Angeles Day Organization; Church of Scientology of California; Church of Scientology International; Religious Technology Center; Author Services, Inc. and their officers, agents, representatives, employees, volunteers, directors, successors, assigns and legal counsel; L. Ron Hubbard's estate, his heirs, and his executor; Author's Family Trust and its beneficiaries and trustee; Mary Sue Hubbard; all Scientology organizations and entities and their officers, agents, employees, servants, directors, successors, assigns and legal counsel (all hereinafter collectively referred to as the "Church"). 3. For and in consideration of the mutual covenants, conditions and release contained herein, LEE does hereby release, acquit and forever discharge, for himself, his heirs, family, successors, executors, administrators and assigns, the Church of Scientology, Los Angeles Day Organizations, Church of Scientology of California; Church of Scientology International; Religious Technology Center; all Scientology and Scientology affiliated organizations and entities; Author Services, Inc. (and for each organization or entity, its officers, agents, representatives, employees, volunteers, - 1 -
directors, successors, assigns and legal counsel); L. Ron Hubbard's heirs, beneficiaries, Estate and its executor; Author's Family Trust, its beneficiaries and trustee; Trustees and Mary Sue Hubbard, and each of them, of and from any and all claims, demands, damages, actions and causes of action of every kind and nature, known or unknown, in any way arising from my participation in or in connection with the Church of Scientology of Los Angeles or any other Scientology related organization. 4. For and in consideration of the mutual covenants, conditions and release contained herein, the Church of Scientology Los Angeles does hereby release, acquit and forever discharge for itself, successors and assigns, LEE, and his agents, representatives, heirs, successors, assigns, legal counsel and estate and each of them, of and from any and all claims, causes of action, demands, damages and actions of every kind and nature, known or unknown, for or because of any act or omission allegedly done by LEE arising from his participation in or in connection with the Church of Scientology of Los Angeles or any other Scientology related organization. In consideration for the releases given and covenants made herein by LEE, the Church of Scientology, Los Angeles Day Organization agrees to pay to LEE the sum of Sixty One Thousand, Nine Hundred and Forty-five dollars ($61,945.00), representing sums previously paid by LEE to Church of Scientology, Los Angeles Day Organization. The payment of this sum will be at the rate of not less than Five thousand dollars ($5,000.00) per month payable on the last day of each month commencing 31 October 1991. - 2 -
5. Further, the undersigned hereby agree to the following: A. That liability for any claims is expressly denied by each party herein released, and this Agreement shall never be treated as an admission of liability or responsibility at any time for any purpose. B. Each party agrees to assume responsibility for the payment of any attorneys' fees, lien or liens, imposed against him in the past, present, or future, known or unknown, by any person, firm, corporation or governmental entity or agency as a result of, or growing out of any of the matters referred to in this release. Each party further agrees to hold harmless the parties herein released, and each of them, of and from any liability arising therefrom. C. In executing this Agreement, the parties hereto, and each of them, agree to and do hereby waive and relinquish all rights and benefits afforded under the provisions of Section 1542 of the Civil Code of the State of California, which provides as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor." LEE agrees that he will dismiss the lawsuit filed against the "Church of Scientology" once the agreement is signed by himself and an authorised Officer of the Church of Scientology of Los Angeles. D. LEE agrees never to create or publish or attempt to publish, and/or assist another to create for publication by means - 3 -
of magazine, article, book or other similar form, any writing, or to broadcast, or to assist another to create, write, film or video tape or audio tape, any show, program or movie, concerning his experiences with the Church of Scientology, or personal or indirectly acquired knowledge or information concerning the Church of Scientology, L. Ron Hubbard, or any entities and individuals listed in Paragraph 2 above. LEE further agrees that he will maintain strict confidentiality and silence with respect to his experiences with the Church of Scientology and any knowledge or information he may have concerning the Church of Scientology, L. Ron Hubbard, or any of the organizations, individuals and entities listed in Paragraph 2 above. E. LEE agrees that he will not voluntarily assist or cooperate with any person adverse to Scientology in any proceeding against any of the Scientology organizations, individuals, or entities listed in Paragraph 2 above. LEE also agrees that he will not cooperate in any manner with any organizations aligned against Scientology. F. LEE agrees not to testify or otherwise participate in any other judicial, administrative or legislative proceeding adverse to Scientology or any of the Scientology Churches, individuals or entities listed in Paragraph 2 above unless compelled to do so by lawful subpoena or other lawful process. Unless required to do so by such subpoena, LEE shall not make himself amenable to service of any such subpoena in a manner which invalidates the intent of this provision. As provided hereinafter in Paragraph 21, the contents of this Agreement may not be disclosed. - 4 -
[line missing] the influence of any drug, narcotic, alcohol or other mind-influencing substance, condition or ailment such that his ability to fully understand the meaning of this Agreement and the significance thereof is adversely affected. H. Lee hereby further agrees that contemporaneous with the full execution of this Agreement by all parties he will execute a Request for Dismissal with prejudice of the entire action known as __ Andrew Lee v. Church of Scientology__ case number 935411 presently pending in the California Superior Court, in the City and County of San Francisco. 6. This Agreement contains the entire understanding of and between the parties hereto, and the terms of this Agreement are contractual and not a mere recital. This Release may be amended only by a written instrument executed by the undersigned. The parties hereto have carefully read and understand the contents of this Agreement and sign the same of their own free will, and it is the intention of the parties to be legally bound hereby. No other prior or contemporaneous agreements, oral or written, respecting such matters, which are not specifically incorporated herein shall be deemed to in any way exist or bind any of the parties hereto. 7. LEE agrees that he will not assist or advise anyone, including but not limited to partnerships, associations or corporations, contemplating any activity adverse to the interests of any entity or class of persons listed above in Paragraph 2 of this Agreement. - 5 -
[line missing] to the negotiation and drafting of this Agreement and all acts required by the terms hereof to be undertaken and performed by any party. 9. The parties to this Agreement acknowledge that all parties enter into this Agreement freely, voluntarily, knowingly and willingly, without any threats, intimidation or pressure of any kind whatsoever and voluntarily execute this Agreement of their own free will. 10. To the extent that this Agreement inures to the benefit of persons or entities not signatories hereto, this Agreement is hereby declared to be made for their respective benefits and uses. 11. The parties shall execute and deliver all documents and perform all further acts that may be reasonably necessary to effectuate the provisions of this Agreement. 12. Not being in agreement with the stated aims of the Church of Scientology, as shown by his desire for payment of sums previously paid to the Church of Scientology, Los Angeles Day Organization, Andrew Lee is furthermore expelled from the Church of Scientology and is no longer entitled to membership and services. 13. This Agreement shall not be construed against the party preparing it, but shall be construed as if both parties prepared this Agreement. This Agreement shall be construed and enforced in accordance with the laws of the State of California. 14. In the event any provisions hereof is unenforceable, - 6 -
such provision shall not affect the enforceability of any other provision hereof. 15. The parties to this Agreement acknowledge that all parties have conducted sufficient deliberation and investigation, either personally or through other sources of their own choosing, and have had the opportunity to obtain advice of counsel regarding the terms and conditions set forth herein, so that they may intelligently exercise their own judgment in deciding whether or not to execute this Agreement. 16. The parties hereto (including any officer, agent, employee, representative or attorney of or for any party) acknowledge that they have not made any statement, representation or promise to the other party regarding any fact material to this Agreement except as expressly set forth herein. Furthermore, except as expressly stated in this Agreement, the parties in executing this Agreement do not rely upon any statement, representation or promise by the other party or of any officer, agent, employee, representative or attorney for the other party. 17. The parties to this Agreement agree that all parties have carefully read this Agreement and understand the contents thereof and that each reference in this Agreement to any party includes successors, assigns, principals, agents, trustees, family and employees thereof. 18. All references to the plural shall include the singular and all references to the singular shall include the plural. All references to gender shall include both the masculine and feminine. - 7 -
Agreement have the full right and [authority?] to enter into this Agreement on behalf of the parties for whom they are signing. 20. The parties hereto each agree not to disclose the contents of this executed Agreement. 21. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be a duplicate original, but all of which, together, shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties hereto have executed this Agreement, on the date opposite their names. DATED: __October 26, 1991__ [signature] ANDREW LEE DATED: __15 Oct. '91__ CHURCH OF SCIENTOLOGY OF LOS ANGELES DAY ORGANIZATION By: [signature] Exec Dir ADDENDUM Any party to this agreement who seeks enforcement of this agreement in a court of law or otherwise shall be entitled to reasonable attorneys' fees and costs. DATED: __October 26, 1991__ [signature] ANDREW LEE DATED: __________________ CHURCH OF SCIENTOLOGY OF LOS ANGELES DAY ORGANIZATION By: [signature] JEANNE M. GAVIGAN, Attor for Church and authorized [signature]
This page was last updated on May 13, 2001.